Capital-labor substitution and balanced growth
This paper explores how different values of the elasticity of substitution between capital and labor ([sigma]) impact on the balanced growth paths and growth potential of a country in exogenous growth models. The behavior of the system depends on the value of [sigma] and the passage of [sigma] through two critical values causes a qualitative change in the nature of the singular points and of its trajectories. The balanced growth path defined by a singular point in the form of a saddle-path exists and is locally stable if [sigma] lies between two critical values.
Year of publication: |
2010
|
---|---|
Authors: | Mallick, Debdulal |
Published in: |
Journal of Macroeconomics. - Elsevier, ISSN 0164-0704. - Vol. 32.2010, 4, p. 1131-1142
|
Publisher: |
Elsevier |
Keywords: | Elasticity of substitution Economic growth Balanced growth path |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Natural Shocks and Marriage Markets: Evolution of Mehr and Dowry in Muslim Marriages
Chowdhury, Shyamal, (2017)
-
Health Aid, Governance and Infant Mortality
Doucouliagos, Chris, (2019)
-
Health aid, governance and infant mortality
Doucouliagos, Chris, (2021)
- More ...